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The mediating role of networking orientation between

entrepreneurial personality characteristics and entrepreneurial
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Article · June 2020

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 THE MEDIATING ROLE OF NETWORKING ORIENTATION
BETWEEN ENTREPRENEURIAL PERSONALITY
CHARACTERISTICS AND ENTREPRENEURIAL INTENTIONS

Ayaz Ali Maitlo Salman Bashir Memon* Mahendar Kumar

Shah Abdul Latif University, Shah Abdul Latif University, Greenwich University,
Pakistan Pakistan Pakistan
ayazalimaitlo@gmail.com salman.memon@salu.edu.pk mahendarbajaj101@gmail.com

Abstract

The literature suggest that there is an existence of networking orientation

relationship with respect to personality characteristics and entrepreneurial
intentions, and that has been tested in different settings but, this paper has
examined the mediating relationship of networking orientation with respect to
personality characteristics that lead towards entrepreneurial intentions in the
context of Sindh Province, Pakistan. Hence, the six personality
characteristics are taken as independent variables with respect to
entrepreneurial intentions mediated by networking orientation. It is found that
locus of control, propensity to take risk, need for achievement and
innovativeness has shown positive and significant relationship but self-
confidence and tolerance to ambiguity has shown significant but negative
relationship. The data collected from 250 shopkeepers, those having
maximum five employees belonging to three cities Khairpur Mir’s, Sukkur
and Shikarpur Sindh. The researcher then tested hypothesized theoretical
model by employing Structural Equation Model (SEM). Ultimately, it implies
through this study that entrepreneurs have to focus on networking orientation
because this can contribute positively in enhancing entrepreneurial
intentions as predicted by personality characteristics of entrepreneurs.

Key Words

Entrepreneurial personality characteristics; entrepreneurial intentions;

networking orientation; small scale business; structural equation model.

INTRODUCTION
*Corresponding Author
Advances in Business-Related Scientific Research Journal, Volume 11, No. 1, 2020

Entrepreneurship is as old as the idea of doing business for the profit but,
the proper definition and understanding of the term and its application was
started to be understood through the lens of political economy that emerged
as a result of sematic work done by Adam Smith through his “Nature and
Causes of the Wealth of Nations” in 1776. It was then entrepreneur, who
was considered to be an agent accumulating resources and combining them
in a way that generates profit and contribute into the economy through
reinvestment and jobs creation. But, he didn’t call that agent an entrepreneur
precisely; but, French author Richard Cantillon in 1755 through his notable
essay “Essai sur la nature du commerce en general” considered
entrepreneur as the central actor of the economic process. However, later on
in 20th century, the concept of entrepreneurship was further divided into two
broader perspectives: Schumpeterian entrepreneur and Kirznerian
entrepreneur.
An entrepreneur is someone who pursue and recognizes an idea or
opportunity and putting those useful ideas into practice (Barringer, Ireland
2008). In this research primarily focus is on the entrepreneurial personality
characteristics, eventually leading towards entrepreneurial intentions through
support of the network. Further, an individual’s psychological, sociological
and demographic characteristics have an impact on that individual’s capacity
in order to become an entrepreneur (Dollinger 1995). It is also mentioned
that the “Big Three” characteristics of an entrepreneur are the need for
achievement, locus of control and risk-taking propensity (Chell 2008).
However, the personality characteristics as similar to this study, found that
the risk-taking propensity, tolerance for ambiguity, openness and flexibility
and self-confidence are positively related to entrepreneurial success (Fine et
al., 2012). Similarly, there are several academic studies, those emphasized
on the entrepreneurial characteristics such as need for achievement, locus
of control, risk-taking propensity, need for autonomy, decisiveness, initiative,
creativity, self-confidence and trust (Westhead, Solesvik, 2016).
On the other hand, entrepreneurial intention is described as a cognitive
representation of actions to be implemented by individuals, either
establishing their new independent ventures or to create new value within
existing companies (Kusmintarti et al. 2014). Entrepreneurial characteristics
are related with entrepreneurial intention through the mediation of
entrepreneurial attitude (Asdani et al., 2014). Similarly, in linking
entrepreneurial personality with their intention and performance, that Big
Five personality dimensions were associated with both dependent variables:
Intention and Performance (Zhou et al., 2009). However, this study is
different in the perspective that first of all, those above studies didn’t include
all six dimensions included in this study such as Locus of Control, Risk-
taking propensity, Self Confidence, Need for achievement, Tolerance to
ambiguity and Innovativeness. Second, this phenomenon is studied in rural
areas of Pakistan and third, the link is not established through the network
orientation, a mediating factor in previous studied conducted in similar
domain. Hence, this study is going to fill the gap that is left wide and open by
other scholars of same arena.

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The conceptual model is the reflection of previous models developed in

previous literature where psychological characteristics relationship is drawn
with entrepreneurial intentions and networking orientation with entrepreneurs
(Dinis et al., 2013; Ebbers, 2014).

PROBLEM STATEMENT

Although, the entrepreneurship domain has been widely discussed and

researched upon but, the entrepreneur as an individual, and the attributes
those lead an individual to create an intention to become an entrepreneur
has not been studied comprehensively so far. Moreover, entrepreneurial
action is taken as a planned behavior; commonly refer to an intention that is
mostly influenced by attitudes (Krueger, Carsrud, 1993). Intention is
associated with cognition including beliefs, perceptions and actions (Ajzen,
1991). While, the domain of personality characteristics of an entrepreneur
has been examined over the last decades and psychological characteristics
has been considered as possible sources for the entrepreneurial
performance. Therefore, a wide variety of research surveyed characteristics
those can determine and provide the answer “who is more likely to start a
business” (Gupta, Muita 2013). Hence, this study has chosen the personal
characteristics of an entrepreneur mediated with its network orientation in
order to discover the link between the personal characteristics of an
entrepreneur and its intention to open or continue an existing business in the
context of rural areas of Pakistan.

RESEARCH OBJECTIVE

Based on research gap just mentioned above, the objective of this study is to
investigate the networking orientation’s mediating effect in relationship of
entrepreneurial personality traits and entrepreneurial intentions of small
scale entrepreneurs. Although related past literature supports the
relationship between entrepreneurial personality characteristics and
entrepreneurial intentions but limited evidences revealed the mediating effect
of networking orientation in relationship of personality characteristics and
intentions (Light, Dana, 2013).

LITERATURE REVIEW

Entrepreneurship is a way to face big challenges such as, unemployment

and poverty and reduced economic growth (Robson et al., 2009). The
positive link of entrepreneurship has been determined with economic growth
and innovation (Oosterbeek et al. 2010). The entrepreneurship is defined as
a process of discovery, evaluation, and exploitation of opportunities (Leyden
et al., 2014). Not only this it is also considered as a set of activities involved
in establishing and developing a new venture (Cooper, 2017; Khuong, An,

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2016). The word entrepreneurship is taken from French language literally

meaning “the one who undertakes” (Dollinger, 2008).
The personality characteristics of entrepreneurship is a tendency of risk-
taking, innovativeness, motivation for achievement, self-confidence,
responsibility, hardworking, tolerance, locus of control, achievement
orientation, dominance, and self-efficacy (Zhang, Zhang, 2013). In addition,
risk attitude, locus of control, extraversion, and openness to experience,
agreeableness and neuroticism are also discussed as personality
characteristics of entrepreneurship (Caliendo et al., 2014).
Locus of Control is a belief on fate, and this word is taken from Latin word
meaning place or location, either internal or external (Prakash et al., 2015).
Internal locus of control is a success or failure depending upon the efforts
invested instead of luck or fate and external locus of control is fate
depending upon luck not in human control (Hsiao et al., 2016). Specifically,
locus of control is necessary for an individual to take risk (Khuong, An,
2016).
Risk-taking propensity is an individual’s inclination to take or avoid risk. It is
the characteristics of an entrepreneurial success and ability to take
deliberate risk (Chatterjee, Das, 2015; Prakash et al., 2015). So the
proactive and risk taker entrepreneurs are better at identifying and
developing entrepreneurial opportunities (Omorede et al., 2015; Block et al.,
2015). It is necessary for entrepreneurs to have inherent risk-taking ability,
because individuals make decisions by accessing complex situations with
some target returns in their minds; further risk-taking propensity positively
influence entrepreneurial intentions (Ozaralli, Rivenburgh, 2016). Even short
term risk-taking has been observed as a positive contributor in
entrepreneurial intention (Zhang et al., 2015). Thus, risk-taking helps in
innovation when mediated by employees’ risk-taking propensity (García-
Granero et al., 2015).
Self Confidence is an ability of handling events and executing those in life
with confidence (Chatterjee, Das, 2015). Its direct impact exists on
productivity asserting owner as a winner, even this self believe causes to
work hard for success in entrepreneurship (McKenzie, 2017). The high belief
in capabilities is developing from past experiences which generate self-
confidence for success in entrepreneurship (Lee et al., 2016). Self-
confidence enables an entrepreneur to accomplish business startup process
and it influence entrepreneurial intentions positively with mediation of attitude
toward entrepreneurship (Aparicio et al., 2016; Tsai et al., 2016).
Need for achievement is an individual’s motivational attribute to desire for
achieving brilliant success (Chatterjee, Das, 2015). Achievement driven
individuals are contributing rapidly in economic growth with the help of
generating entrepreneurial opportunities (Jelilov, Onder, 2016). While in
education of entrepreneurship for increasing entrepreneurial skills the
moderate effect of need for achievement has been observed (Din et al.,
2016). Moreover, individuals having high need for achievement are more
capable and perform better along with higher ability to prevail under difficult
situations as compared to those individuals having lower need for
achievement (Karimi et al., 2017).

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Tolerance to ambiguity is an ability to recognize ambiguous situations as

open and desirable, also an ambiguous situation is composed of insufficient,
complicated and outwardly conflicting information needed to be tolerated by
an individual (Chatterjee, Das, 2015). It is the avoidance for uncertainty and
ambiguity, referring degree of individual focus to avoid uncertain events
(Tahir, 2014). In uncertain situations entrepreneurs must respond positively
because of insufficient information available for decision making, but if he
has trust on himself then he is tolerant of ambiguity (Mohanty, 2015).
Innovativeness is an ability to generate ideas concluding in the creation of
new products and services (Prakash et al., 2015). It is also instrumental in a
way in which an entrepreneur can exploit ideas for the generation of new
products and business opportunities (Chatterjee, Das, 2015; Omorede et al.,
2015). The success of an entrepreneur is measured by ability of innovations
by introducing new technology in products and services (Mohanty, 2015).
Innovation and creativity are considered as crucial factors to enhance
entrepreneurship, which certainly leads towards economic growth and
development (Westhead, Solesvik, 2016).
Entrepreneurial Intention is a key element in understanding process of
business creation contributed by a number of researches in an
entrepreneurial context and characteristics (Liñán et al., 2011). The
psychological characteristics i.e. self-confidence, need for achievement
showed positive relationship, while propensity to risk showed negative
relationship and other three variables i.e. tolerance for ambiguity, locus of
control and innovativeness relationship found to be insignificant (Dinis et al.,
2013). The entrepreneurial intentions relationship with personality
characteristics has been confirmed in previous studies mainly in meta-
analysis (Liñán, Fayolle, 2015). Even though, the developed regions with
support of social environment have contributed more in terms of
entrepreneurial intentions as compared to less developed regions (Liñán et
al., 2011).
Networking Orientation appeared to be equally valuable for personal gains
as explained in a comparative study, showing the positive relationship with
those business partners whom business assignments were given and no
relationship found with those whom business assignments were received
(Ebbers, 2014). Networking behavior of individuals in educational trainings
has been determined having positive relationship with training and coaching
but no relationship found just with only training (Spurk et al., 2015). The
positive moderating effect of business networking found on entrepreneurial
orientation and new venture performance (Su et al., 2015). Further
networking effectiveness mediated partially in the relationship between
entrepreneurial orientation and firm performance in small and medium
enterprises (Hughes et al., 2015).

CONCEPTUAL FRAMEWORK

Mediating effect of networking orientation in influence of

entrepreneurship on entrepreneurial intentions (EI  NO  ENT)

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Networking orientation and entrepreneurial intentions relationship is

significant with entrepreneurship (Ebbers, 2014; Frederick et al., 2018).
There is positive relationship between entrepreneurship and entrepreneurial
intentions in educational institutions (Dinis et al., 2013). Mediating
relationship of social networking between individuals and resources has
been tested for confirmation of contribution in success (Foley, & O'Connor,
2013). Personality characteristics, i.e., locus of control and self-confidence
effects significantly, while need for achievement effects were insignificant to
entrepreneurial intentions (Sesen, 2013). Contrary to this business students
in private universities of Pakistan have shown a positive influence of
personality characteristics on entrepreneurial intentions (Farrukh et al.,
2017). Further social networking provided support with positive relationship
in case of organizational learning (Assis-Dorr et al., 2012). So the
entrepreneurial orientation and entrepreneurship has been tested as a
mediator and moderator in organization flexibility and strategic business
performance (Yousaf, Majid, 2018). For mediation below hypotheses is
drawn based on above information.

H1: Networking orientation has significant effect in influence of

entrepreneurship on entrepreneurial intentions

Mediating effect of networking orientation in influence of Locus of

Control on entrepreneurial intentions (EI  NO  LC)

The study shows that when individuals face challenges and difficulties the
locus of control can assist them to be more proactive in order to get help
from individuals in their social network (Chen, Yen 2012). As it is revealed
that locus of control can lead to positive entrepreneurial attitudes (Soomro,
Shah, 2015). Also, the locus of control can be enhanced when mediated with
social capital in association with entrepreneurship (Hsiao et al., 2016).
In terms of big five traits, the locus of control contribute significantly with
entrepreneurial activity (Obschonka, Stuetzer, 2017). Hence below
hypotheses is drawn based on above information.

H2: Networking orientation has significant effect in influence of locus of

control on entrepreneurial intentions

Mediating effect of networking orientation in influence of risk-taking

propensity on entrepreneurial intentions (EI  NO  PR)

The risk-taking propensity has negative influence on entrepreneurial

intentions in students to start business (Dinis et al., 2013). Contrary, risk-
taking propensity influence significantly and is positive to entrepreneurial
intentions in male entrepreneurs as compared to female entrepreneurs
(Sánchez, Licciardello, 2017). Further the opportunity entrepreneurs take
more risk to achieve success in entrepreneurial activities (Block et al., 2015).
Even duration of risk-taking matters (Zhang et al., 2015). Further risk-taking

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when tested as a mediator enhanced influence of creativity theory on

innovation (García-Granero et al., 2015). Hence based on above information
below hypotheses is drawn.

H3: Networking orientation has significant effect in influence of risk-taking

propensity on entrepreneurial intentions

Mediating effect of networking orientation in influence of Self

Confidence on entrepreneurial intentions (EI  NO  SC)

Self-confidence has positive influence on entrepreneurial intentions in

students starting new business (Dinis et al., 2013). Similarly, self-confidence
is significantly and positively correlated with opportunity entrepreneurship
(Aparicio et al., 2016). In mediating effect self-confidence exerts significant
and positive effect (Zhao et al., 2005). Further moderation of social
environment is also available in relationship of entrepreneurial education and
entrepreneurial intentions (Ekpe, Mat, 2015). Similarly, self-confidence
showed significant and positive effects when mediated in emotional
intelligence and entrepreneurial intentions (Mortan et al., 2014). So from
above discussion the hypotheses can be drawn as below.

H4: Networking orientation has significant effect in influence of self-

confidence on entrepreneurial intentions

Mediating effect of networking orientation in influence of need for

achievement on entrepreneurial intentions (EI  NO  NA)

Moderate relationship of need for achievement appears in reducing

unemployment and enhancing performance of entrepreneurial activity (Din et
al., 2016). Even when need for achievement mediated by contextual factors
(perceived support and perceived barriers) the significant relationship has
been determined with entrepreneurial intentions (Karimi et al., 2017). Need
for achievement correlate positively with firm success (Khan et al., 2015).
Hence below hypotheses is drawn based on above information.

H5: Networking orientation has significant effect in influence of need for

achievement on entrepreneurial intentions

Mediating effect of networking orientation in influence of tolerance for

ambiguity on entrepreneurial intentions (EI  NO  TA)

There exists insignificant relationship of entrepreneurial intentions for

tolerance to ambiguity in students (Dinis et al., 2013). But in Turkish
student’s tolerance for ambiguity found to have low influence on
entrepreneurial intentions (Gürol, Atsan, 2006). While, tolerance for
ambiguity influence on entrepreneurial intentions is more in American as
compared to Irish with insignificant results (De Pillis, Reardon, 2007). But the
network level entrepreneurial orientation is influenced by the mediating effect

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of networking (Wincent et al., 2016). Hence below hypotheses is drawn

based on above information.

H6: Networking orientation has significant effect in influence of tolerance for

ambiguity on entrepreneurial intentions

Mediating effect of networking orientation in influence of

Innovativeness on entrepreneurial intentions (EI  NO  IN)

There exists insignificant relationship of innovativeness to entrepreneurial

intentions in students (Dinis et al., 2013). Innovativeness in mediation
enhanced the relationship of social networking and learning orientation on
performance (Pesämaa et al., 2015). Female entrepreneurs’ intentions have
more significant and positive influence of innovative outcomes (Ratten,
2016). The mediation analysis of entrepreneurial intentions can be enhanced
in emerging technology industries by personal innovativeness of the
entrepreneurs (Dutta et al., 2015). Hence below hypotheses is drawn based
on above information.

H7: Networking orientation has significant effect in influence of

innovativeness on entrepreneurial intentions

RESEARCH METHODOLOGY

This study has used the quantitative paradigm and it is cross-sectional in

nature. The sampling design used is non-probability convenience sampling,
as it is the best method that could be employed to conduct the study in
limited time (Lavrakas, 2008).
The study is based on small scale entrepreneurs, so all the data is
collected through survey questionnaire from shopkeepers of mentioned three
cities. For data collection, a paper based questionnaire survey was
conducted from November 2018 to March 2019 from small scale business
owners (i.e., shopkeepers) not having more than five employees, in three
cities of North Sindh namely; Khairpur Mir’s, Shikarpur, and Sukkur. The
non-probability sampling based on convenience method was tailored to
distribute 500 translated versions of survey questionnaires in order to avoid
any kind of language barrier and get appropriate response from the
respondents. As a result, the final usable responses received are 250 and
the response rate remained 50%.
The survey questionnaire consumed for this study was based on previously
established scale of 36 items on entrepreneurial intention and psychological
characteristics (Dinis et al., 2013; Liñán, Chen, 2009) and five item scale of
networking orientation (Ebbers, 2014; Hoogendoorn et al., 2013). Further
researcher self-administered the scale and translated it in local languages,
i.e., Sindhi and Urdu for understanding of local respondents who don’t know
English. The translation of questionnaires did with help of language
specialist to keep the scale reliability and validity.

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ANALYSIS AND RESULTS

Respondents Profile

Referring the data in Table 1, personal and categorical information has been
achieved in five criteria i.e. gender, age, education, experience and location.
According to descriptive results total 250 respondents out of which 232
nearly 92.8% are male and only 18 nearly 7.2% are female. The quantity of
female respondents is very small because of cultural limitations and limited
female entrepreneurs in Pakistani society; even these female respondents’
data were collected with high efforts. These females are the owners of
beauty parlors and female dress designers etc. Further details about
remaining criteria’s are given in table 1.

Table 1: Personal and Categorical Information

Category Profile Total Number (%)

Gender Male 232 92.8
Female 18 7.2
Up to 25 16 6.4
Age 26 –35 72 28.8
36 – 45 80 32.0
46 – 55 57 22.8
Above 55 25 10.0
Educational Level No Education 08 3.2
Intermediate or less 71 28.4
Bachelors 93 37.2
Masters 68 27.2
MPhil/PhD 10 4.00
02 or less years 11 4.4
04 years 12 4.8
Experience 06 years 27 10.8
08 years 60 24.0
10 years 74 29.6
12 or above years 66 26.4
Khair Pur Mir’s 85 34.0
Location Shikarpur 69 27.6
Sukkur 96 38.4
Source: Own survey.

Reliability Validity Analysis

Three techniques are adopted to access the internal consistency of the

measures, i.e. Cronbach’s Alpha 0.70 (Dinis et al., 2013), Composite
reliability and Average Variance Extracted. The overall questionnaire
Cronbach's Alpha results appeared 0.830 showing strong internal
consistency of the measure as shown below in table 2. Further table 3,
describes internal consistency results along with minimum threshold of each
technique. Results show similarity with past literature (Davis et al., 2016;

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Dinis et al., 2013) i.e. composite reliability and Cronbach’s Alpha of

propensity to risk, self-confidence, need for achievement, tolerance to
ambiguity, innovativeness and entrepreneurial intentions are approaching to
0.70 except self-confidence CR 0.567. Further it has been observed that
except entrepreneurial intentions, composite reliability and Cronbach’s Alpha
are improved and are approaching toward threshold limit 0.70.
While average variance extracted explains the total elements of variance in
the indicators which accounted for latent variables, its minimum level of
satisfaction threshold is 0.30 (Hair et al., 2010), further average variance
extracted is a measure of variance retained by amount with latent construct
relative to variance remaining from measurement error and somewhere
threshold is 0.50 i.e. in field of marketing research (Maitlo et al., 2017). Here
in this study result of locus of control’s is above 0.45 and networking
orientation above 0.32 but other variables is less than satisfactory level
indicating low total elements variance in the indicators. Further based on our
sample of 250 participants, Cronbach’s alpha and composite reliability of
scale support to use it in data collection, these both will increase if this scale
will be applied to more sample size.

Table 2: Scale Reliability Statistics

Cronbach's Alpha N of Items

.830 8
Source: Own survey.

Table 3: Results of Cronbach Alpha, Composite Reliability, Average

Variance Extracted (AVE)

Dimensions Cronbach – Composite Reliability Average Variance Extracted

α (CR) (AVE)
Threshold Limit ≥ 0.7 ≥ 0.7 ≥ 0.5
Locus of control 0.829 0.83 0.45
Propensity to take risk 0.651 0.647 0.273
Self confidence 0.647 0.567 0.179
Need for achievement 0.635 0.629 0.232
Tolerance to ambiguity 0.67 0.658 0.294
Innovativeness 0.672 0.63 0.249
Networking Orientation 0.737 0.739 0.324
Entrepreneurial 0.692
Intentions 0.656 0.257
Source: Own survey.

Correlation Analysis

Correlation between variables shown in table 4 indicates the strength of

relationship of variables at significant level below 0.05, ranging from -1 to +1
(Lind et al., 2012). The results show weak relationship with dependent
variable except locus of control having value above 0.5 at significant level
0.05, but the relationship of all independent variables is significant.

Table 4: Results of the Pearson Correlation Coefficients (r)

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Dimension Frequency Correlation Coefficient (r) Sig Level

LC and EI 250 0.562 0.000
PR and EI 250 0.427 0.000
SC and EI 250 0.351 0.000
NA and EI 250 0.415 0.000
TA and EI 250 0.317 0.000
IN and EI 250 0.358 0.000
NO and EI 250 0.229 0.000

Table 5: Hypotheses Testing

Source: Own survey.

The Structural Equation Model

Structural equation model analysis through IBM-SPSS Amos, adopted

because it facilitates to identify, evaluate and represent hypothesized
relations between variables through graphical and non-graphical paths in
model. Structural equation model is considered cross-sectional, linear
statistical method of analysis and generally yield a model fit with normal data
distribution. Especially, mediation in regression and path analysis used in
this study are special features of structural equation model, because of
which it is feasible that researcher can use it with least sample size for
measurement scale and residual distribution (Hair et al., 2012).

Measurement Model Results

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In total, eight latent variables and 56 individualized items were consumed to

construct the hypothesized model of this study. Figure 2 represents a
measurement model results based on the main hypotheses. The result
shows that the relationship of personality characteristics and entrepreneurial
intentions is mediated positively and significantly (0.47) by networking
orientation in comparison of past researches (Dinis et al., 2013). Even fit
indices results can determine that few indices are good and few have
weaker results. i.e. χ2 is 1901.456 shows good fit. Also other model fit
indices such as CFI (comparative fit index) = 0.887, TLI (tucker-Lewis index)
= 0.863, IFI (incremental fit index) = 0.894, NFI (normed fit index) = 0.855,
and RMSEA (root-mean-square error of approximation) = 0.073, values left
behind the recommended threshold edges i.e. NFI≥ 0.90, CFI≥ 0.90 and
RMSEA ≤ 0.08.

Figure 1: Measurement Model Results based on Hypotheses H1, H2, H3,

H4, H5, H6, and H7

Fit Indices Result

χ2 = 1901.456, χ2 / df = 2.33, CFI = 0.887, TLI = 0.863, IFI = 0.894, NFI = 0.855, RMSEA =
0.073
Source: Own survey.

Hypotheses Testing Results

The path model was tested using multivariate analysis technique as the
results of both direct and indirect model(s) are reported in Table 5. In case of
both direct and indirect path model(s), the five hypotheses were supported

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and the relationship found to be significant at p-value < 0.05. Further, the
model fitness was checked through chi square value which implies that the
hypotheses H1, H2, H3, H5 and H7 couldn’t be rejected. For the mediated
model, H1 (EI  NO  ENT: γ= 0.47, p-value = 0.00), H2 (EI  NO  LC:
γ= 0.884, t= 6.231, p-value = 0.00), H3 (EI  NO  PR: γ= 0.200, t= 3.577,
p-value = 0.00), H5 (EI  NO  NA: γ= 0.201, t= 3.491, p-value = 0.00)
and H7 (EI  NO  IN: γ= 0.691, t= 5.779, p-value = 0.00) appeared
significant. Whereas; hypotheses H4 (EI  NO  SC: γ= -0.180, t= -2.145,
p-value = 0.032) and H6 (EI  NO  TA: γ= -0.158, t= -2.724, p-value =
0.006) are rejected because of negative gamma and t value.
Finally, in this analysis it is concluded that the relationship of
entrepreneurial intentions is mediated by networking orientation when tested
with the six dimension(s) of entrepreneurial personality characteristics i.e.
locus of control, propensity to take risk, self-confidence, need for
achievement, tolerance to ambiguity and innovativeness. Out of these only
four determined the positive and significant while two i.e. self-confidence and
tolerance to ambiguity determined significant but negative relationship with
entrepreneurial intentions when mediated by networking orientation.

DISCUSSION

Based on purpose of study the empirical relationship found to be significant

and positive in four independent variables i.e. locus of control, propensity to
take risk, need for achievement and innovativeness but significant and
negative in two independent variables i.e. self-confidence and tolerance to
ambiguity with dependent variable when mediated by networking orientation.
While in previous literature it was found that without mediation the propensity
to take risk were supported with negative relationship, but locus of control,
tolerance to ambiguity and innovativeness were not supported, only two
independent variables need for achievement and self-confidence were
supported (Dinis et al., 2013). Similarly, when behavior and psychological
approaches relationship applied simultaneously with entrepreneurial
intentions, only hypotheses of need for achievement supported from
psychological approach along with hypotheses of social norms and personal
attitude from behavioral approach (Ferreira et al., 2012). But when
personality and contextual factors mediated by theory of planned behavior
with entrepreneurial intentions, risk-taking propensity, need for achievement
and locus of control found strongly correlated with entrepreneurial intentions
after mediation, and this is consistent with past researches that when
personality traits are mediated with behavioral characteristics they have
shown prediction of entrepreneurial intentions (Karimi et al., 2017).
Here in results of this study, hypothesized relationship of self-confidence
and tolerance to ambiguity with entrepreneurial intentions is negative but
significant when mediated by networking orientation and hence rejected
because it was set as positive and significant. All of the relationships are
having above 95% confidence level i.e. of significant level less than 0.05 (p ≤
0.05). Among all variables independent and dependent after mediation

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correlation results are significant and positive which also support the results
mediation effects. Similarly, past studies identified the personality traits not
only effect probability of becoming entrepreneur but also the entrepreneurial
process (Caliendo et al., 2014). Most of the past studies have tested simple
relationship of entrepreneurial traits with different variables i.e.
entrepreneurial intentions, entrepreneurial process, entrepreneurial
orientation etc. but the mediating relationship is lacking to test effect of
personality traits (Karimi et al., 2017; Diniset al., 2013; Caliendo et al., 2014;
Ferreira et al., 2012). Finally, enhanced relationship of entrepreneurial traits
with entrepreneurial intentions examined when mediated by networking
orientation.
Referring the complexity of model, six independent variables are
concurrently tested with entrepreneurial intentions in mediation of networking
orientation, certainly disturbs the fitness indices but the level of fitness
indices is not too much away from threshold, so covering normality of data
distribution and testing relationship is determined. Also the context along
with sample size matters and these indices can be enhanced by improving
sample size.

CONCLUSION AND RECOMMENDATION

Output from this research contributes a step forward in field of

entrepreneurship because by enhancing networking orientation an
entrepreneur can enhance his intentions of entrepreneurship, if he has
entrepreneurial personality characteristics. Currently in Pakistan there is dire
need of entrepreneurship for economic prosperity, Pakistan is facing
challenge of lesser entrepreneurship activity than other developing countries
in Asia i.e. Sri Lanka, Bangladesh and India, and is ranked on 138th out of
189 countries on the level of ease of doing business (Shabbir et al., 2018).
So this research recommends proactive measures and can help the
researches, decision makers in enhancing the potential of entrepreneurship
in small scale business individuals as well as initiators.

LIMITATIONS

Along with general limitations of time, resources and data collection the
survey is conducted only from three cities of north Sindh i.e. Khairpur Mir’s,
Sukkur and Shikarpur. Further the use of convenient (non-probability)
sampling for easy access to sample is a potential limitation that can be
circumvented in future studies.

FUTURE DIRECTIONS

The mediation of networking orientation can be tested in a relationship of

entrepreneurial orientation along with all six as well as in two different sets of

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three independent variables of personality traits. In this research paper the

Structural Equation Model (SEM) implied but in future other testing
techniques i.e. Partial Least Square (PLS) can be implied to get results for
analysis.

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